In what is clearly a pre-election budget, the 2016-17 Federal Budget includes significant changes in the areas of:

  • Tax concessions for small and medium businesses
  • The taxation of multinational groups
  • Superannuation

Obviously, implementation of many of these measures is contingent on the result of the next election.

Interestingly the greatest revenue is being raised by the changes to the Tobacco Excise ($4.707bn) followed by the new Tax Avoidance Taskforce being established within the Australian Taxation Office ($3.060bn).  The superannuation changes are forecast to raise some $2.884bn in additional revenue.

This revenue is funding tax cuts for individuals ($3.950bn) and businesses ($2.650bn), although the benefit of the reduction in the company tax rate is being phased in over 10 years.

There were no changes to negative gearing or the CGT discount concession.


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